The shipment of goods to global markets entails various processes. While some companies have their in-house shipping arrangements, others rely on freight forwarding. Using freight forwarders is essential as it removes the shipping hassle, thus streamlining the whole process until the goods get to you.

The global economy is just recovering and growing exponentially since the Covid-19 pandemic attack. As such, shipping goods locally and internationally has seen a steady increase. With this increase in shipment, most companies opt to leave exportation and importation tasks to freight forwarders. These companies do this to focus on other things like meeting their growing demand, rather than handling logistics infrastructure.

This article focuses on the benefits and processes of freight forwarding. Therefore, read to its entirety to find out.

Benefits of freight forwarding

As mentioned, involving a freight forwarding agency in your business offloads the shipping burdens and helps to streamline the shipment processes. As such, a freight forwarder will be an arbitrator between the shipping company and the final destination, which, in this case, is your company. Though freight forwarders don’t carry out the shipping, they provide various transport modes, including sea, ocean, rail, or road transportation.

Freight forwarding services provide cost-effective options. They use reliable connections with shippers and partners to negotiate the best shipping price. This includes using reputable commercial routes with constant departures and ensuring to choose a route that enhances swiftness, cost, and reliability.

A freight forwarder is a crucial part of trilateral operations since they deal with large shipment volumes from one transnational destination to the other. This is because three companies, to say the least, get involved in these triangular operations – manufacturer, intermediary, and customer. Each one is located in a different location but handles single delivery of goods using the same mode of transportation. These operations are complicated and, thus, a freight forwarder is essential to handle them.

Since many freight forwarders are authorized operators, you benefit from streamlined customs clearance.

The principles of freight forwarding

Freight forwarding

Freight forwarding values are centered on the proficient and cost-effective goods transfer and keep them in perfect condition until they get to the client. That said, freight forwarders strive to become professionals in handling the logistics required for goods to arrive safely and on time. To achieve prosperous trade and shipping in the growing globalized markets, you need to have the right tools at your disposal.

What is involved in freight forwarding?

        i.            Track shipment

Using a Transportation Management System, forwarders will maintain transparency throughout the stages of freight voyage.

      ii.            Customs Brokerage

Certified forwarders are the only individuals with sufficient qualifications to handle and submit wide-ranging credentials needed to complete the importation and exportation processes. This is because customs brokerage is a critical factor that involves special licensure. 

    iii.            Warehousing

A freight forwarder will store the goods before they are shipped and after reaching the destination country. Some may already have their warehouses ready to harbor these commodities. All in all, freight forwarders offer wide-ranging storage facilities to ensure convenience.

     iv.            Negotiation process

As mentioned, forwarders provide cost-effective shipping solutions. However, this is not as easy as it sounds. The forwarders will then bargain with various carriers to ensure cost-effective rates.

       v.            Consolidate freight

Forwarders deal with various clients who want to ship their items at once. However, some items don’t occupy a whole container. It is the forwarder’s responsibility to ensure smaller consignments are shipped in the same container. This ensures to spread the shipping cost amongst all the participants.

     vi.            Provide cargo insurance

Freight forwarders can give you a cargo insurance policy that intends to reimburse any payment lost due to damage or stolen goods during transit.